Help advice needed

ams_h

Hi guys,

I need some advice..... My folks have decided to sell up meaning i have to find my own place. I have looked at council properties and also the Shared Ownership of which you own 25% of the property and rent the rest.

Im pretty keen on this idea as is has the possiblilty of owning your own place eventually, but my problem is i have a loan which i have recently negotiated with the bank and they wont let me extended the length. So questions are...

1) are you able to add the loan to the mortage
2) If the property is up for 20k and you have a mortage for 32k (this is has loan included and extra for fees and furnishings) what exactly is the mortage against the property, is it still 20K or would it be 32k???

Last question to you all do you think this is even worth it? should i just take out another loan over a longer period and pay off the bank loan meaning payments less and more affordable for me to move out or keep looking at the mortage option?

Im totally lost when it comes to all this so any help is welcomed.

Thanks a million!

poppysarah

Is it cheaper to rent 100% rather than buy 25% and rent the rest?
These schemes are designed to prop up silly prices and I think buying only 25% of a home is something most people will regret fairly quickly.

Buying isn't everything.

You should probably clear your debt and save a deposit before you think about buying.

tek-monkey

Agreed, if you have large debts you probably wont be able to buy anyway. Also I'm not aware of any mortgages that let you get more than the value of the house?

laughingcow81

It might be better to rent a room in a house share or rent a place before thinking about buying.

It would be much better to clear your loan and start afresh rather then get tied into something which you may not be able to afford comfortably.

ams_h

There isn't much in it between renting and rent & buy because of the loan repayments.

Although i am keen on the part buy thing i have been thinkin of just trying to do what you said an clear my debt and rent a property that i can afford, ok so it wont be the best but its a start and not for ever right?!

Thanks for the reply!!

poppysarah

Get yourself registered with council and housing associations and get a nice sensible priced rental if possible. Will be easier to save if you're paying less in rent.

ams_h

i am on a council list and may have a viewing for a bedsit / 1 bed flat next week, im just looking in to all options.

Thanks for your help everyone!!! I think i may just stick to the rent option and try and clear my debts.